BILL NUMBER: SB 3	CHAPTERED  10/10/99

	CHAPTER   726
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   AUGUST 30, 1999
	AMENDED IN SENATE   JULY 15, 1999
	AMENDED IN SENATE   JUNE 30, 1999
	AMENDED IN SENATE   APRIL 6, 1999

INTRODUCED BY   Senators Rainey, Burton, and Alpert  and Assembly
Members Havice and Torlakson
   (Principal coauthors:  Senators McPherson and Schiff)
   (Principal coauthors:  Assembly Members Cunneen, Longville, Soto,
Thomson, and  Villaraigosa)
   (Coauthors:  Senators Chesbro, Costa, Johnston, Karnette, Kelley,
O'Connell, Perata, Solis, and Speier)
   (Coauthors:  Assembly Members Aroner, Bock, Calderon, Cardenas,
Correa, Davis, Florez, Jackson, Kuehl, Leach, Lempert, Lowenthal,
Mazzoni, Romero, Scott, Washington, and Wildman)

                        DECEMBER 7, 1998

   An act to add Chapter 12 (commencing with Section 19985) to Part
11 of the Education Code, relating to financing a public library
construction and renovation program, making an appropriation
therefor, and by providing the funds necessary therefor through an
election for, and the issuance and sale of, bonds of the State of
California and by providing for the handling and disposition of those
funds, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 3, Rainey.  California Reading and Literacy Improvement and
Public Library Construction and Renovation Bond Act of 2000.
   Existing law establishes the California Library Construction and
Renovation Bond Act of 1988, which authorized the issuance pursuant
to the State General Bond Law of bonds in the amount of $75,000,000
for the purpose of financing a special library construction and
renovation program.
   This bill would enact the California Reading and Literacy
Improvement and Public Library Construction and Renovation Bond Act
of 2000, which would authorize the issuance pursuant to the State
General Bond Law of bonds in the amount of $350,000,000 for the
purpose of financing a library construction and renovation program
administered by the State Librarian.
   The bill would provide for submission of the bond act to the
voters at the statewide primary election on March 7, 2000, and would
become operative upon adoption by the voters at that election.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 12 (commencing with Section 19985) is added to
Part 11 of the Education Code, to read:

      CHAPTER 12.  CALIFORNIA READING AND LITERACY IMPROVEMENT AND
PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000
      Article 1.  General Provisions

   19985.  This chapter shall be known and may be cited as the
California Reading and Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2000.
   19985.5.  The Legislature finds and declares the following:
   (a) Reading and literacy skills are fundamental to success in our
economy and our society.
   (b) The Legislature and Governor have made enormous strides in
improving the quality of reading instruction in public schools.
   (c) Public libraries are an important resource to further
California's reading and literacy goals both in conjunction with the
public schools and for the adult population.
   (d) The construction and renovation of public library facilities
is necessary to expand access to reading and literacy programs in
California's public education system and to expand access to public
library services for all residents of California.
   19986.  As used in this chapter, the following terms have the
following meanings:
   (a) "Committee" means the California Library Construction and
Renovation Finance Committee established pursuant to Section 19972.
   (b) "Fund" means the California Public Library Construction and
Renovation Fund.
   (c) "Board" means the California Public Library Construction and
Renovation Board.  This board is comprised of the State Librarian,
the Treasurer, the Director of Finance, an Assembly Member appointed
by the Speaker of the Assembly, a Senator appointed by the Senate
Rules Committee, and a member appointed by the Governor.
   Legislative members of the board shall meet with, and participate
in, the work of the board to the extent that their participation is
not incompatible with their duties as Members of the Legislature.
For the purposes of this chapter, Members of the Legislature who are
members of the board shall constitute a joint legislative committee
on the subject matter of this chapter.

      Article 2.  Program Provisions

   19987.  The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the California Public Library
Construction and Renovation Fund, which is hereby established.
   19988.  All moneys deposited in the fund, except as provided in
Section 20011, are continuously appropriated to the State Librarian,
notwithstanding Section 13340 of the Government Code, and shall be
available for grants to any city, county, city and county, or
district that is authorized at the time of the project application to
own and maintain a public library facility for the purposes set
forth in Section 19989.
   19989.  The grant funds authorized pursuant to Section 19988, and
the matching funds provided pursuant to Section 19995, shall be used
by the recipient for any of the following purposes:
   (a) Acquisition or construction of new facilities or additions to
existing public library facilities.
   (b) Acquisition of land necessary for the purposes of subdivision
(a).
   (c) Remodeling or rehabilitation of existing public library
facilities or of other facilities for the purpose of their conversion
to public library facilities.  All remodeling and rehabilitation
projects funded with grants authorized pursuant to this chapter shall
include any necessary upgrading of electrical and telecommunications
systems to accommodate Internet and similar computer technology.
   (d) Procurement or installation, or both, of furnishings and
equipment required to make a facility fully operable, if the
procurement or installation is part of a construction or remodeling
project funded pursuant to this section.
   (e) Payment of fees charged by architects, engineers, and other
professionals, whose services are required to plan or execute a
project authorized pursuant to this chapter.
   19990.  Any grant funds authorized pursuant to Section 19988, or
matching funds provided pursuant to Section 19995, may not be used by
a recipient for any of the following purposes:
   (a) Books and other library materials.
   (b) Administrative costs of the project, including, but not
limited to, the costs of any of the following:
   (1) Preparation of the grant application.
   (2) Procurement of matching funds.
   (3) Conduct of an election for obtaining voter approval of the
project.
   (c) Interest or other carrying charges for financing the project,
including, but not limited to, costs of loans or lease-purchase
agreements in excess of the direct costs of any of the authorized
purposes specified in Section 19989.
   (d) Any ongoing operating expenses for the facility, its
personnel, supplies, or any other library operations.
   19991.  All construction contracts for projects funded in part
through grants awarded pursuant to this chapter shall be awarded
through competitive bidding pursuant to Part 3 (commencing with
Section 20100) of Division 2 of the Public Contract Code.
   19992.  This chapter shall be administered by the State Librarian.
  The board shall adopt rules, regulations, and policies for the
implementation of this chapter.
   19993.  A city, county, city and county, or district may apply to
the State Librarian for a grant pursuant to this chapter, as follows:

   (a) Each application shall be for a project for a purpose
authorized by Section 19989.
   (b) An application may not be submitted for a project for which
construction bids already have been advertised.
   (c) The applicant shall request not less than fifty thousand
dollars ($50,000) per project.
   19994.  (a) The State Librarian shall consider applications for
construction of new public library facilities submitted pursuant to
Section 19993 in the following priority order:
   (1) First priority shall be given to joint use projects in which
the agency that operates the library and one or more school districts
have a cooperative agreement.
   (2) Second priority shall be given to all other public library
projects.
   (b) The State Librarian shall consider applications for remodeling
or rehabilitation of existing public library facilities pursuant to
Section 19993 in the following priority order:
   (1) First priority shall be given to public library projects in
the attendance areas of public schools that are determined, pursuant
to regulations adopted by the board, to have inadequate
infrastructure to support access to computers and other educational
technology.
   (2) Second priority shall be given to all other projects.
   19995.  (a) Each grant recipient shall provide matching funds from
any available source in an amount equal to 35 percent of the costs
of the project.  The remaining 65 percent of the costs of the
project, up to a maximum of twenty million dollars ($20,000,000) per
project, shall be provided through allocations from the fund.
   (b) Qualifying matching funds shall be cash expenditures in the
categories specified in Section 19989 which are made not earlier than
three years prior to the submission of the application to the State
Librarian.  Except as otherwise provided in subdivision (c), in-kind
expenditures do not qualify as matching funds.
   (c) Land donated or otherwise acquired for use as a site for the
facility, including, but not limited to, land purchased more than
three years prior to the submission of the application to the State
Librarian, may be credited towards the 35 percent matching funds
requirement at its appraised value as of the date of the application.
  This subdivision shall not apply to land acquired with funds
authorized pursuant to Part 68 (commencing with Section 100400).
   (d) Architect fees for plans and drawings for library renovation
and new construction, including, but not limited to, plans and
drawings purchased more than three years prior to the submission of
the application to the State Librarian, may be credited towards the
35 percent matching funds requirement.
   19996.  (a) The estimated costs of a project for which an
application is submitted shall be consistent with normal public
construction costs in the applicant's area.
   (b) An applicant wishing to construct a project having costs that
exceed normal public construction costs in the area may apply for a
grant in an amount not to exceed 65 percent of the normal costs up to
a maximum of twenty million dollars ($20,000,000) per project if the
applicant certifies that it is capable of financing the remainder of
the project costs from other sources.
   19997.  Once an application has been approved by the board and
included in the State Librarian's request to the committee, the
amount of the funding to be provided to the applicant may not be
increased.  Any actual changes in project costs are the full
responsibility of the applicant.  If the amount of funding that is
provided is greater than the cost of the project, the applicant shall
return that portion of the funding that exceeds the cost of the
project to the fund.  If an applicant has been awarded funding by the
board, but chooses not to proceed with the project, the applicant
shall return all of the funding to the fund.
   19998.  (a) In reviewing applications, as part of establishing the
priorities set forth in Section 19994 the board shall consider all
of the following factors:
   (1) Needs of urban and rural areas.
   (2) Population growth.
   (3) Age and condition of the existing library facility.
   (4) The degree to which the existing library facility is
inadequate in meeting the needs of the residents in the library
service area and the degree to which the proposed project responds to
the needs of those residents.
   (5) The degree to which the library's plan of service integrates
appropriate electronic technologies into the proposed project.
   (6) The degree to which the proposed site is appropriate for the
proposed project and its intended use.
   (7) The financial capacity of the local agency submitting the
application to open and maintain operation of the proposed library
for applications for the construction of new public libraries.
   (b) If, after an application has been submitted, material changes
occur that would alter the evaluation of an application, the State
Librarian may accept an additional written statement from the
applicant for consideration by the board.
   19999.  (a) A facility, or the part thereof, acquired,
constructed, or remodeled, or rehabilitated with grants received
pursuant to this chapter shall be dedicated to public library direct
service use for a period of not less than 20 years following
completion of the project.
   (b) The interest of the state in land or a facility, or both,
pursuant to the funding of a project under this chapter, as described
in subdivision (a), may be transferred by the State Librarian from
the land or facility, or both, for which that funding was granted to
a replacement site and facility acquired or constructed for the
purpose of providing public library direct service.
   (c) If the facility, or any part thereof, acquired, constructed,
remodeled, or habilitated with grants received pursuant to this
chapter ceases to be used for public library direct service prior to
the expiration of the period specified in subdivision (a), the board
is entitled to recover, from the grant recipient or the recipient's
successor in the maintenance of the facility, an amount that bears
the same ratio to the value of the facility, or the appropriate part
thereof, at the time it ceased to be used for public library direct
service as the amount of the grant bore to the cost of the facility
or the appropriate part thereof.  For purposes of this subdivision,
the value of the facility, or the appropriate part thereof, is
determined by the mutual agreement of the board and the grant
recipient or successor, or through an action brought for that purpose
in the superior court.
   (d) Notwithstanding subdivision (f) of Section 16724 of the
Government Code, any money recovered pursuant to subdivision (c)
shall be deposited in the fund, and shall be available for the
purpose of awarding grants for other projects.

      Article 3.  Fiscal Provisions

   20000.  Bonds in the amount of three hundred fifty million dollars
($350,000,000), exclusive of refunding bonds, or so much thereof as
is necessary, may be issued and sold for deposit in the fund to be
used in accordance with, and for carrying out the purposes expressed
in, this chapter, including all acts amendatory thereof and
supplementary thereto, and to be used to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of
the Government Code.  The bonds, when sold, shall be and constitute
a valid and binding obligation of the State of California, and the
full faith and credit of the State of California is hereby pledged
for the punctual payment of both principal of and interest on bonds
as the principal and interest become due and payable.
   20001.  The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law apply to the bonds and to this
chapter and are hereby incorporated in this chapter as though set
forth in full in this chapter.
   20002.  (a) For purposes of this chapter, the California Library
Construction and Renovation Finance Committee established pursuant to
Section 19972 is the "committee" as that term is used in the State
General Obligation Bond Law.
   (b) For purposes of the State General Obligation Bond Law, the
California Public Library Construction and Renovation Board
established pursuant to subdivision (c) of Section 19986 is
designated the "board."
   20003.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in this chapter,
including all acts amendatory thereof and supplementary thereto, and,
if so, the amount of bonds to be issued and sold.  Successive issues
of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
   20004.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of and interest on the bonds each year.  It is
the duty of all officers charged by law with any duty in regard to
the collection of the revenue to do and perform each and every act
that is necessary to collect that additional sum.
   20005.  Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
   (a) The sum annually necessary to pay the principal of and
interest on bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Section 20006, appropriated
without regard to fiscal years.
   20006.  For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount or amounts not to exceed the amount of the unsold
bonds that have been authorized to be sold for the purpose of
carrying out this chapter.  Any amounts withdrawn shall be deposited
in the fund.  Any money made available under this section shall be
returned to the General Fund, with interest at the rate earned by the
money in the Pooled Money Investment Account during the time the
money was withdrawn from the General Fund pursuant to this section,
from money received from the sale of bonds for the purpose of
carrying out this chapter.
   20007.  The board may request the Pooled Money Investment Board to
make a loan from the Pooled Money Investment Account, in accordance
with Section 16312 of the Government Code, for the purposes of
carrying out this chapter.  The amount of the request shall not
exceed the amount of the unsold bonds that the committee has, by
resolution, authorized to be sold for the purpose of carrying out
this chapter.  The board shall execute any documents required by the
Pooled Money Investment Board to obtain and repay the loan.  Any
amounts loaned shall be deposited in the fund to be allocated by the
board in accordance with this chapter.
   20008.  Any bonds issued and sold pursuant to this chapter may be
refunded by the issuance of refunding bonds in accordance with
Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
Division 2 of Title 2 of the Government Code.  Approval of the
electors of the state for the issuance of bonds under this chapter
shall include the approval of the issuance of any bonds issued to
refund any bonds originally issued or any previously issued refunding
bonds.
   20009.  All money deposited in the fund that is derived from
premium and accrued interest on bonds sold pursuant to this chapter
shall be reserved in the fund and shall be available for transfer to
the General Fund as a credit to expenditures for bond interest.
   20010.  The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIIIB of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
   20011.  Amounts deposited in the fund pursuant to this chapter may
be appropriated in the annual Budget Act to the State Librarian for
the actual amount of office, personnel, and other customary and usual
expenses incurred in the direct administration of grant projects
pursuant to this chapter, including, but not limited to, expenses
incurred by the State Librarian in providing technical assistance to
an applicant for a grant under this chapter.
  SEC. 2.  Section 1 of this act shall take effect upon the adoption
by the voters of the California Library Construction and Renovation
Bond Act of 2000, as set forth in Section 1 of this act.
  SEC. 3.  Section 1 of this act shall be submitted to the voters at
the March 7, 2000, statewide primary election in accordance with
provisions of the Elections Code and the Government Code governing
submission of statewide measures to voters.
  SEC. 4.  Notwithstanding any other provisions of law, all ballots
of the election shall have printed thereon and in a square thereof,
the words:  "California Reading and Literacy Improvement and Public
Library Construction and Renovation Bond Act of 2000" and in the same
square under those words, the following in 8-point type:  "This act
provides for a bond issue of three hundred fifty million dollars
($350,000,000) to provide funds for the construction and renovation
of public library facilities in order to expand access to reading and
literacy programs in California's public education system and to
expand access to public library services for all residents of
California."  Opposite the square, there shall be left spaces in
which the voters may place a cross in the manner required by law to
indicate whether they vote for or against the act.
   Where the voting in the election is done by a means of voting
machines used pursuant to law in the manner that carries out the
intent of this section, the use of the voting machines and the
expression of the voters' choice by means thereof are in compliance
with this section.
  SEC. 5.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for this act to appear on the March 7, 2000, statewide
primary ballot, and, at the earliest possible time, expand access to
reading and literacy programs in California's public education system
and expand access to public library services for all residents of
California, it is necessary for this act to go into immediate effect.
